West Japan Railway Company (JR West) Corporate Communications Department
20 Years After JNR Privatization Vol. 2
West Japan Railway Company (JR West) Corporate Communications Department
Introduction Using this as a springboard, we turned the sense of crisis after privatization into an advantage by developing a wide JR West was founded in April 1987 when Japanese range of measures to improve safety and service, and National Railways (JNR) was divided and privatized, so taking action to strengthen and enhance our business. April 2007 marked our 20th anniversary. The objective However, while implementing these measures, the Great of the privatization reforms was to revitalize the railway Hanshin-Awaji Earthquake struck the Kobe region in business—to achieve this, we quickly established an January 1995, causing huge damage to JR West. Although independent and responsible management system and it was a difficult challenge, our staff overcame the many addressed a wide range of issues in order to gain the problems we faced. trust of our customers. However, all this was undone Another important objective was genuine privatization when the Fukuchiyama Line disaster on 25 April 2005— and we were finally listed on the stock exchange on 8 costing 106 lives and injuring more than 500 others— October 1996. Amendments to the JR legislation in lost the trust of our customers and Japanese society in December 2001 formalized the full privatization; JRTT general. We would like to take this opportunity to JNR Settlement Headquarters finally sold all its remaining apologize sincerely again to the families of those who shares in March 2004 to make JR West fully privatized in were killed in the accident, those who were injured, and true terms too. As such, we had achieved a key goal. all the people who were caught up in the accident in any Although we have always recognized that safety has way. We are still doing all we can to help the accident priority in our business, the terrible accident on the victims and are reforming the company to create a Fukuchiyama Line killing 106 people and injuring over ‘Corporate Culture Placing Top Priority on Safety’ with 500 others destroyed the trust built between JR West and the objective of trying our utmost to regain our customers’ our customers and society as a whole. trust. This article highlights these efforts, and also uses the opportunity of our 20th anniversary to look back on Implementing Safety Enhancement Plan our past activities and describe our outlook for the future. Although we had always recognized safety as a management priority, the terrible accident on the JR West History Fukuchiyama Line made us re-examine every aspect of Progress over 20 years our organization. Immediately after the accident, we did our utmost to support the victims. We were deeply aware JR West inherited rail operations in the Kansai area from of the accident severity and determined to review our JNR. There was especially intense competition with large entire business to identify the issues we needed to address private railway companies in this region, and there were to prevent a recurrence of this tragedy. We wanted to no very profitable sections, such as the Tokyo metropolitan implement these measures quickly, so 31 May 2005 saw area or the Tokaido Shinkansen. At its establishment, JR publication of our Safety Enhancement Plan (Fig. 1) West was seen as having the weakest business of the three allowing us to start acting on creating a ‘Corporate Culture JR companies on Honshu and we expected difficulties Placing Top Priority on Safety.’ soon after the foundation. The plan comprised 40 items and is divided into three In facing this harsh business environment, we started by categories—Efforts to Reform Culture and Instill a Sense formulating our Corporate Philosophy, outlining the direction of Value, Specific Structural and Training-related Measures of JR West and and how to share these values with all staff. for Promoting Safety, and Specific Hardware and In addition, we established suggestion boxes so customers Equipment-related Measures for Promoting Safety. We could feedback their opinions on our service. This helped are determined to help our customers to feel safe and focus our management objective of always putting customers reassured as soon as possible, and are continuing to first and reflecting their opinions in our policies. spread the principles of this plan through the company.
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Figure 1 Safety Enhancement Plan
Issues and Problems Basic Attitudes Progress of Principal Measures
1. Culture and Sense of Value
Formulation of new Corporate Figure 2 New Corporate Philosophy and Safety Charter Philosophy and Safety Charter The terrible Fukuchiyama Line accident prompted us to Safety Charter undertake a comprehensive review of our Corporate Philosophy forming the basis of company policy and the We, ever mindful of the railway accident that occurred values shared by all staff. We drew up a new philosophy on April 25, 2005, conscious of our responsibility for after involving all staff in company-wide discussions, and protecting the truly precious lives of our customers, and also asking the opinions of outside experts. At the same based on the conviction that ensuring safety is our time, we emphasized to everyone that safety—the first item foremost mission, establish this Safety Charter. in the Corporate Philosophy—is the value with top priority. In line with this, we revised the Safety Charter code of 1. Safety is ensured primarily through understanding conduct outlining how every staff member must act to and complying with rules and regulations, a strict ensure safety. We are continuing to disseminate and apply execution of each individual’s duty, and the principles established in these two documents. improvements in technology and expertise, and built up through ceaseless efforts. Review of medium-term targets 2. The most important actions for ensuring safety are In October 2006, we reviewed our group’s Medium-Term to execute basic motions, to rigorously enforce Management Targets to make becoming a ‘Corporate safety checks, and to implement flawless Culture Placing Top Priority on Safety.’ the top priority. communication. We also planned how to spread and apply the new Corporate Philosophy and Safety Charter, and full implementation of the Safety Enhancement Plan. These 3. To ensure safety, we must make a concerted effort, irrespective of our organizational affiliation, rank or actions aimed to establish quick recovery of customer assignment. trust and sustained development of the corporate group. Furthermore, specific actions were taken on 6 themes identified as important management issues—Sincere 4. When uncertain about a decision, we must choose Response to Accident Victims, Promotion of Measures to the most assuredly safe action. Enhance Safety, Promotion of Reforms, Provision of Quality Services and Products Preferred by Customers, 5. Should an accident occur, our top priorities are to Enhancement and Preservation of Technology, and prevent concomitant accidents, and to aid Expertise and Promotion of Technological Development, passengers. and Performance of Corporate Social Responsibility (CSR).
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Activities in Each Business Field revision greatly expanded the number of Nozomi services and increased the opportunity to ride them by introducing San’yo Shinkansen stops at stations in Himeji, Fukuyama, Tokuyama, and JR West’s operations area consists of two metropolitan Shin-Yamaguchi. Nozomi fares were also revised and areas and 16 prefectures in the Hokuriku, Kansai, non-reserved seats introduced. Chugoku and north Kyushu regions. We operate the Our J-West Card service was launched in Feb 2006, and San’yo Shinkansen, conventional intercity lines, and the July that year saw extension of the Express Reservation urban network in Kyoto, Osaka, and Kobe. About 4.9 service to the full length of the Tokaido and San’yo million people ride our trains daily (FY2005). shinkansen. Clearly, we have put a lot of effort into The March 1993 timetable revision marked the launch improving services for customers. of Nozomi on the San’yo Shinkansen to provide customers with the most convenient and comfortable Conventional lines services. A further timetable revision in March 1997 We have taken a proactive approach to improving introduced Series 500 Nozomi trains running at speeds customer convenience over the years. up to 300 km/h. Another timetable revision in March To meet the diversifying and more sophisticated demands 2000 introduced the Hikari Rail Star, which—in addition of customers using the urban network in Kyoto, Osaka and to greatly cutting Hikari journey times—introduced Kobe, we have improved a wide range of services, including special shinkansen services, such as four-seat rows for introducing new trains, opening new stations, increasing reserved seating, office seats, quiet cars, and special frequency, increasing direct service to city centres, seating compartments. The October 2003 timetable improving station access, and introducing line nicknames.
JR West Corporate Philosophy
1. W e, being conscious of our responsibility for protecting the truly precious lives of our customers, and incessantly acting on the basis of safety first, will build a railway that assures our customers of its safety and reliability. 2. We, with a central focus on railway business, will fulfill the expectations of our customers, shareholders, employees and their families by supporting the lifestyles of our customers, and achieving sustainable growth into the future. 3. We, valuing interaction with customers, and considering our business from our customers’ perspective, will provide a comfortable service that satisfies our customers. 4. We, together with our Group companies, will consistently improve our service quality by enhancing technology and expertise through daily efforts and practices. 5. We, deepening mutual understanding, and respecting each individual, will strive to create a company at which employees find job satisfaction and in which they take pride. 6. We, acting in a sincere and fair manner in compliance with the spirit of legal imperatives, and working to enhance corporate ethics, will seek to be a company trusted by communities and society. Series 500 Nozomi and Hikari Rail Star—main trains on San’yo Shinkansen
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Marketing In marketing, we have held a number of promotional campaigns to rejuvenate domestic tourism and expand railway use. These include the Santo Monogatari Campaign, launched in December 1989; the Kyushu Symphonic Journey Campaign launched in February 1991 to promote tourism in Kyoto, Osaka, and Kobe; the Discover West Campaign launched in October 2003; and the Japanese Beauty Hokuriku Campaign launched in April 2004. In March 2000, we introduced the ‘5489’ telephone reservation service, and in November of the same year, we launched the JR-odekake net service, a website offering railway information, such as train time searches and special promotional campaigns. When launching the website, we also started the ‘e5489’ Internet-based J-West Card with convenient Express Reservation function train reservation service. In June 2004, the separately managed Information Centre, Telephone Reservation Centre and ‘Kiku-zo Suggestion Corner’ were integrated into the single JR West Customer Centre as a channel for customers to contact JR West by telephone or e-mail about any issue. We are making great efforts to reflect customer feedback in our future policies. In March 2007, we opened Sakura-Shukugawa Station on the JR Kobe Line between Nishinomiya and Ashiya and increased the number of non-smoking carriages on limited expresses to coincide with a timetable revision. Customer convenience was further enhanced in July 2007 by the introduction of new Series N700 trains on the San’yo Shinkansen and a revised timetable. The ICOCA card service area is being expanded.
The J-Through Card service was launched on 26 February 1999 at all stations in the urban network with automatic ticket gates. 1 November 2003 marked the start of the ICOCA IC card service, which became interoperable with JR East’s Suica card on 1 August 2004, and the PiTaPa card issued by the Surutto Kansai Association. The SMART ICOCA service, supporting e-money, was introduced to accompany the launch of the J-West Card. We have endeavoured to provide more comfortable service for customers riding intercity limited expresses by introducing new models, such as the Thunderbird and Ocean Arrow, and have upgraded in-train facilities too. Local lines make up about half of our total track length, and improving the management of such lines has been an important issue. With this in mind, beginning in FY1990, we established Line Operations Departments at constant intervals along lines to integrate operations and deliver more efficient and agile management. This concept was also applied to main lines by establishing The Discover West Area Operations Departments in October 1995 to improve Campaign aims to operations by simplifying the organization and integrating rejuvenate domestic operations. Different operational measures were taken tourism and expand to suit the different characteristics of each line. railway use.
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September 2007 marked the 10th anniversary of the Kyoto Station opening.
Affiliated Businesses JR West’s affiliated businesses have been developed with a central focus on providing services for rail customers and to ensure effective use of stations and real-estate assets near stations. All companies in the JR West group are independent and responsible for managing their business development. They have increased the income and earnings of the group as a whole by fully exploiting their unique management resources and competitive strengths. In April 2001, the group organized JR West departments and group companies in the same business field into single entities to strengthen the business foundation of each management unit by making effective use of assets and maximizing consolidated earnings. The NexStation Plan formulated in February 2003 aims to improve facilities and create next-generation stations that are attractive and easy to use. Under this plan, we are renovating stations by developing commercial districts and providing new services, as well as making stations more functional and appealing. We will continue our development plans with further city-centre developments, shopping-centre renovations, and commercial developments on the sites of old company housing. We are also redeveloping Osaka Station—our largest—to make it a lively transport hub befitting a great city and offer customers a comfortable and enjoyable experience. The renovation and construction of the new North Building are proceeding well with the grand opening scheduled for spring 2011; the station’s magnificent dome will be completed in the winter that year.
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The North Building at Osaka Station is scheduled to open in spring 2011. This is an artist’s impression of the finished station.
Future Priorities and Conclusion Act) cycle by clarifying the chain of responsibility and using all in-house meetings. With regard to future activities, we place greatest priority We opened our Railway Safety Education Centre in April on promoting companywide Medium-Term Management 2007 to make every employee remember the tragedy of Targets based on the new Corporate Philosophy and Safety the Fukuchiyama Line accident and promote a systematic Charter. In particular, we will emphasize the policies of understanding of safety countermeasures developed from Sincere Response to Accident Victims, Promotion of past experience. This Centre is part of our efforts to further Measures to Enhance Safety, and Promotion of Reforms. improve safety and is intended to be a focal point for The first item is the most important across the entire safety education. Its activities will be based on the company and we will each try to fully understand the recommendations of bodies, such as the Safety Council absolute priority of safety so that no-one ever forgets the and the results of studies conducted at the Safety Fukuchiyama Line tragedy or experiences anything Research Institute. similar again. We believe that organization reform is the key to any In terms of Promotion of Measures to Enhance Safety, we safety enhancement that we achieve; to create a will focus on fully implementing structural and training- foundation for sustained development and regain related measures and hardware and equipment-related customers’ trust, we are determined to reform from every measures in the Safety Enhancement Plan. angle, including work mechanisms, operational We will take measures to deepen understanding that processes, and employee awareness. Finally, we would safety is the top priority, by disseminating the new like to underline our deep sorrow for the suffering and Corporate Philosophy and Safety Charter, utilizing pain caused by the terrible Fukuchiyama Line accident, accident risk factor information, and using mechanisms and apologize again from the bottom of our hearts. such as safety meetings. Further, based on the Railway Safety Management Regulation formulated in October 2006, to establish a better safety management structure, This article, including illustrations, was originally published in Japanese we aim to further strengthen the PDCA (Plan-Do-Check- in the April 2007 edition of JR Gazette published by Kotsu Shimbunsha.
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JR West Chronology 2000 11 Mar— Debuted Hikari Rail Star 1987 17 Aug — Licensed first female shinkansen driver 1 Jul — Launched ‘Kiku-zo Suggestion Corner’ and ‘Kiku-zo Suggestion Box’ 1 Dec — Moved Osaka Railway Hospital to new building 16 Jul — Established Management Philosophy 2001 1988 1 Mar— Opened Universal-city Station on Yumesaki Line (Sakurajima Line) 2 Feb — Selected ‘WENS’ as travel brand name 7 Jul — Introduced high-speed trains on San’in Line with debut of Super Oki and Super 13 Mar— Debuted West Hikari Kunibiki Started using nicknames on nine sections of eight lines in Kansai region 1 Oct — Merged TiS Headquarters with Nippon Travel Agency, Co., Ltd. 10 Apr — Opened Honshi-Bisan Line (Seto-Ohashi Line) 13 Nov — Announced Medium-Term Management Targets 28 Jun — Held first general shareholders meeting 1 Dec — Government amended laws affecting operators in JR group 22 Dec — Started Refreshing Manner Campaign 2002 1989 15 Mar— Celebrated 30th anniversary of opening San’yo Shinkansen to Okayama 11 Mar— Debuted Grand Hikari and Super Raicho (Thunderbird) Series 221 commuter 1 Jun — Reformed organization and established Business Development Department trains 20 Aug — Started Kammon Kaikyo Campaign 21 Jul — Debuted Twilight Express 1 Oct — Introduced women-only carriages on Osaka Loop Line and Gakken-Toshi Line 22 Jul — Debuted Super Kuroshio 23 Nov — Retired Grand Hikari 5 Dec — Adopted ‘TiS’ as unified, and abbreviated name for centres 6 Dec — Consolidated Nippon Travel Agency, Co., Ltd. into subsidiary 6 Dec — Started Santo Monogatari Campaign 2003 1990 19 Feb — Announced NexStation Plan 10 Mar— Introduced line colours for 10 main lines in Kansai region 1 Mar— Opened JR Rokkomichi Kid’s Room childcare complex 1 Apr — Opened Hakata-Minami Line (between Hakata and Hakata-Minami) 1 Apr — Opened JR West Information Centre 1 Jun — Founded first Line Operations Department 3 Sep — Opened Shanghai Office 1 Oct — Debuted new Marine Liner 1991 Started Discover West Campaign 1 Feb — Started Kyushu Symphonic Journey Campaign 1 Nov — Started ICOCA IC card service 1 Apr — Founded second Line Operations Department 1 Dec — Closed Kabe Line between Kabe and Sandankyo 27 Apr — Opened Sagano Scenic Railway 1 Oct — Purchased San’yo Shinkansen 2004 12 Mar— Achieved full privatization with second sell-off of government-held shares 1992 7 Apr — Started joint Japanese Beauty Hokuriku Campaign with JR East 30 Mar— Started using new head office building 16 May— Started work on renovating Osaka Station 1 Apr — Founded third Line Operations Department 21 Jun — Opened JR West Customer Centre 2 Apr — Established Practical Training Centre at Okayama branch 1 Aug — Started interoperability between ICOCA and Suica, and started Kid ICOCA 8 Jun — Started WIN350 tests service 8 Aug — Set Japanese record of 350.4 km/h for WIN350 Celebrated 25th anniversary of revival of SL Yamaguchi service 1993 14 Oct — Designated four items at Modern Transportation Museum as Historic Railway 18 Mar— Debuted Nozomi on San’yo Shinkansen Items 1 Jun — Founded Kyoto, Osaka and Kobe branches with Transport Safety Office at 10 Dec — Designated Umekoji depot as nationally important cultural asset each branch 2005 1 Jul — Started using SUNTRAS Hanwa Line Operation Control System 17 Jan — Commemorated 10th anniversary of Kobe Earthquake and held emergency 1994 drills 15 Jun — Opened Kansai Airport Line 20 Feb — Introduced automatic ticket gates on San’yo Shinkansen 4 Sep — Debuted Haruka Kansai Airport Limited Express 10 Mar— Celebrated 30th anniversary of opening of San’yo Shinkansen to Hakata 25 Apr — Suffered Fukuchiyama Line accident 1995 2 May— Opened Consultation Office for Assistance to Victims of Fukuchiyama Line 17 Jan — Suffered cuts on San'yo Shinkansen and Kobe Line during major Kobe Accident Earthquake 31 May— Submitted Safety Enhancement Plan to Ministry of Land, Infrastructure and 10 Mar— Celebrated 20th anniversary of opening San’yo Shinkansen to Hakata Transport 1 Apr — Reopened Kobe Line after 74 days 3 Jun — Held first Emergency Safety Meeting 8 Apr — Reopened San’yo Shinkansen after 81 days 19 Jun — Reopened Fukuchiyama Line between Amagasaki and Takarazuka 28 Apr — Started using UrEDAS (Urgent Earthquake Detection and Alarm System) on 28 Jun — Held first Safety Council San’yo Shinkansen 1 Oct — Started ICOCA e-money service 1 Oct — Founded Area Operations Department 11 Nov — Opened Special Office for Fukuchiyama Line accident 1996 1 Dec — Debuted Series 321 commuter train 31 Jul — Debuted Super Kuroshio Ocean Arrow 2006 8 Oct — Listed on Osaka, Tokyo and Nagoya stock exchanges 21 Jan — Started service interoperability between ICOCA and PiTaPa 15 Oct — Listed on Kyoto, Hiroshima and Fukuoka stock exchanges 1 Feb — Issued J-West Card 1997 1 Mar— Founded Fukuchiyama Line Train Accident Victim Support Centre 8 Mar— Opened Tozai Line with J-Through system on this line and Gakken-Toshi Line Closed Toyamako Line 22 Mar— Debuted Series 500 Nozomi 1 Apr — Formulated Corporate Philosophy and Safety Charter 27 Jun — Held first general shareholders meeting after stock exchange listing 25 Apr — Held First Fukuchiyama Line Train Accident Memorial Ceremony 5 Jul — Opened renovated Umekoji Steam Locomotive Museum 29 May— Established Discover West Association 11 Sep — Opened new Kyoto Station building 26 Jun — Held opening ceremony for Safety Research Institute 29 Nov — Extended Series 500 Nozomi to Tokyo 22 Jul — Extended Express Reservation service to San’yo Shinkansen 16 Oct — Held groundbreaking ceremony for construction of new North Building at Osaka 1998 Station 1 Apr — Established Committee on Global Environment 21 Oct — Started connecting Hokuriku Line and Kosei Line 28 Apr — Started using early earthquake warning systems on conventional lines 31 Oct — Announced review of group Medium-Term Management Targets 10 Jul — Debuted Sunrise Express 30 Nov — Debuted Series 521 AC/DC train 1999 1 Dec — Started Club Discover West travel club 26 Feb — Introduced J-Through Card system in Kansai region Completed No. 2 Control Centre for Tokaido and San’yo shinkansen 13 Mar— Debuted Series 700 Nozomi and opened Asa Station on San’yo Shinkansen
*Compiled by Kotsu Shimbunsha, based on company directory and Kotsu Shimbun
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